Monthly Archives: March 2013

Qualifying for Chapter 7 Bankruptcy through the Means Test

Posted by Kathlyn on March 23, 2013
Finance / No Comments

When a person’s debts become so burdensome and unmanageable that they can no longer reasonably make payments and maintain their quality of life, it is easy to feel like there are no options to achieve financial solvency or get out of debt. However, this is far from the truth as there are a number of options for debtors looking to get a fresh financial start. Two of the most common choices that debtors pursue in this situation are Chapter 7 bankruptcy and Chapter 13 bankruptcy.

In seeking financial assistance or debt relief, a debtor may think that they have the option to file for either of these types of bankruptcy; however, there is a large distinction between these two forms of bankruptcy, particularly in who is allowed to apply for each. The main difference in eligibility for Chapter 7 and Chapter 13 bankruptcy is the amount of income that a debtor or their family has. Chapter 7 bankruptcy is designed to provide financial relief to debtors whose income is too low to reasonably pay off their debts in any amount of time, whereas Chapter 13 bankruptcy is designed to provide payment options and debt relief over time for debtors who have enough income to make consistent payments.

In order to identify those individuals or households who are eligible to file for Chapter 7 bankruptcy, the Chapter 7 means test has been put in place. This test measures your income and compares it against certain factors in order to determine whether your income truly is low enough to make you an applicable candidate for Chapter 7 bankruptcy. In order to pass the means test and qualify to file for Chapter 7 bankruptcy, a person must meet one of the two following criteria:

  • Have a monthly income that is less than the median (average) income for a household of their size in their state
  • Have a disposable income that is considered too low to adequately make payments on debts that are unsecured, like credit card debts. Disposable income is calculated by subtracting your allowed monthly expenses, such as rent, food, and bills, from your monthly income. Figuring out whether your disposable income is low enough can be extremely difficult as the amount of money you are allowed for necessary expenses varies from area to area. As such, many people turn to a bankruptcy attorney for help calculating their income levels.

The means test is not meant to make bankruptcy more confusing or difficult for debtors, but rather is in place to guide debtors to file for the form of bankruptcy that will be best for them in the long run.

Information For Students: The Importance of Retaining a Business Attorney

Posted by Kathlyn on March 20, 2013
Business, Informational / 1 Comment

A business attorney can be a good investment for any commercial business owner. Because business law can be somewhat complex, it is not easy for a non-lawyer to dot all the Is and cross the Ts. Important legal aspects are bound to be overlooked or forgotten, simply because business executives might not have the legal skills and experience to deal with business legalities. A competent business lawyer will ensure that all the necessary legal requirements are upheld and that all relevant paperwork is completed accurately and efficiently.

What kind of trouble can you get into if you don’t have the benefit of a business attorney’s expertise? Well, that depends. If you are just starting out in business, you may find yourself in deep water when it comes to drafting partnerships or corporate documents. Such contracts and documents may be drawn up incorrectly, or written to your disadvantage. Liability is another area where you can run into trouble, no matter what kind of business you’re in. Additionally, compliance with the state and federal rules and regulations governing your type of business, or the formation of your business, can cause problems if your legal documentation is incorrect or problematic. Unfortunately, it won’t help your case to say you “didn’t know” that you made a mistake. The owners of the flight school ( swear by the assistance of their business attorney, who helped greatly with tax liabilities and the formation of the company. It is your responsibility to know, and for your lawyer to explain to you what all those legal terms actually mean.

According to the website of the Cedar Rapids business attorneys of Arenson Law Group, PC, a lawyer can not only protect from legal complications when your business is beginning, but can also provide support if and when a person or entity sues your company for violation of law.  Having this support can be beneficial because you will not have to worry about what legal steps to take to fight back; your attorney will take care of it for you. This will guarantee that a professional will be dealing with issues they are familiar with while you concentrate on running your business.

Retaining a business attorney is a worthwhile expense. From the time that you start a business, there are legal complications that are best left to a professional to handle, as mistakes can be made easily and can lead to complete and utter ruin. Compliance with all business laws is critical, and a lawyer can help you be sure you are doing what you need to do.

Learn More About Theft Crimes

Posted by Kathlyn on March 15, 2013
Crimes, Informational / 1 Comment

common types of criminal offenses, it can still put a strain on you and your life. Being arrested can mean that you face hefty financial penalties, as well as possible long term imprisonment. Your life does not have to end like that.

There are a number of theft charges, and penalties depend on the severity of these different types. The different types of theft are:

  1. Identity theft – where a person uses private details of the victim (such as credit cards) to purchase or acquire things
  2. Property theft – when a person steals something that is legally owned by another person
  3. Shoplifting – also called retail theft, this involves taking merchandize or goods from a business without paying for those things
  4. Burglary – illegally entering another person’s home with the intent of stealing  personal property
  5. Automobile theft – stealing or taking another person’s car without his or her knowledge or permission
  6. Robbery – taking or trying to take something valuable from a person using threats and force, causing fear in the victim

People arrested for theft charges more often than not have their rights taken for granted. You don’t have to put up with such treatment. Knowing your rights and fighting for them is important, which is why it is just as important to find a criminal attorney that you can trust.  Being under police custody can be hard, especially when you want to maintain your rights, but with a good lawyer, you won’t have to put up with bad treatment.